📊 DERM Key Takeaways
Is Journey Medical Corp (DERM) a Good Investment?
Journey Medical exhibits deteriorating fundamentals with negative operating margins (-9.3%), inability to cover interest expenses from operations (coverage ratio -1.7x), and unsustainable free cash flow burn (-$12.1M) on minimal revenue growth (+1% YoY). Despite adequate liquidity ($27.2M cash), the current burn rate provides approximately 2 years of runway, and without significant operational improvements or revenue acceleration, the company faces material financing risk.
Journey Medical’s fundamentals are weak: revenue growth is minimal while operating and net margins remain deeply negative, indicating the business is not converting sales into sustainable profitability. Liquidity is adequate in the near term, but persistent operating cash burn, very negative free cash flow, and weak interest coverage reduce financial flexibility and make the growth profile low quality.
Journey Medical Corp Key Strengths (DERM)
- Positive operating cash flow of $2.9M demonstrates some operational traction and revenue collection
- Strong liquidity position with current ratio of 1.72x and quick ratio of 1.47x providing near-term financial flexibility
- Reasonable leverage with debt/equity ratio of 0.82x and $27.2M cash reserves reducing immediate solvency risk
- Revenue is still growing modestly year over year, showing product demand has not collapsed
- Cash of $24.95M and a 1.42x current ratio provide some near-term liquidity support
- Debt/equity of 0.97x is meaningful but not yet extreme relative to equity base
DERM Stock Risks: Journey Medical Corp Investment Risks
- Unprofitable operations with -$1.5M operating loss and -14.0% net margin on flat revenue growth indicates core business model is not generating value
- Cannot service debt from operations (interest coverage ratio -1.7x), forcing reliance on cash reserves for interest payments; unsustainable long-term
- Free cash flow burn of -$12.1M annually combined with $15.0M capex indicates unsustainable cash consumption with finite runway absent major revenue inflection or funding
- Negative operating income, net income, and margins indicate an unprofitable core business
- Operating cash flow is negative and free cash flow is deeply negative, suggesting cash consumption is elevated
- Negative interest coverage and sizable long-term debt increase refinancing and balance-sheet risk if losses persist
Key Metrics to Watch
- Revenue growth acceleration and path to profitability (operating margin must turn positive)
- Free cash flow and interest coverage ratio trends (negative coverage is critical red flag)
- Cash burn rate and remaining runway; monitor for covenant violations on $25.4M long-term debt
- Operating cash flow trend and free cash flow improvement
- Operating margin improvement and interest coverage recovery
Journey Medical Corp (DERM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Journey Medical Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DERM Profit Margin, ROE & Profitability Analysis
DERM vs Healthcare Sector: How Journey Medical Corp Compares
How Journey Medical Corp compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Journey Medical Corp Stock Overvalued? DERM Valuation Analysis 2026
Based on fundamental analysis, Journey Medical Corp shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Journey Medical Corp Balance Sheet: DERM Debt, Cash & Liquidity
DERM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Journey Medical Corp's revenue has remained relatively flat over the 5-year period, with a 3% decline. The most recent EPS of $-0.72 indicates the company is currently unprofitable.
DERM Revenue Growth, EPS Growth & YoY Performance
DERM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $13.1M | -$2.2M | $-0.08 |
| Q3 2025 | $14.6M | -$2.3M | $-0.09 |
| Q2 2025 | $14.9M | -$3.4M | $-0.16 |
| Q1 2025 | $13.0M | -$4.1M | $-0.18 |
| Q3 2024 | $14.6M | -$1.7M | $-0.09 |
| Q2 2024 | $14.9M | -$3.4M | $-0.17 |
| Q1 2024 | $12.2M | -$10.1M | $-0.53 |
| Q3 2023 | $15.3M | -$1.7M | $-0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Journey Medical Corp Dividends, Buybacks & Capital Allocation
DERM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Journey Medical Corp (CIK: 0001867066)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DERM
What is the AI rating for DERM?
Journey Medical Corp (DERM) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DERM's key strengths?
Claude: Positive operating cash flow of $2.9M demonstrates some operational traction and revenue collection. Strong liquidity position with current ratio of 1.72x and quick ratio of 1.47x providing near-term financial flexibility. ChatGPT: Revenue is still growing modestly year over year, showing product demand has not collapsed. Cash of $24.95M and a 1.42x current ratio provide some near-term liquidity support.
What are the risks of investing in DERM?
Claude: Unprofitable operations with -$1.5M operating loss and -14.0% net margin on flat revenue growth indicates core business model is not generating value. Cannot service debt from operations (interest coverage ratio -1.7x), forcing reliance on cash reserves for interest payments; unsustainable long-term. ChatGPT: Negative operating income, net income, and margins indicate an unprofitable core business. Operating cash flow is negative and free cash flow is deeply negative, suggesting cash consumption is elevated.
What is DERM's revenue and growth?
Journey Medical Corp reported revenue of $16.0M.
Does DERM pay dividends?
Journey Medical Corp does not currently pay dividends.
Where can I find DERM SEC filings?
Official SEC filings for Journey Medical Corp (CIK: 0001867066) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DERM's EPS?
Journey Medical Corp has a diluted EPS of $-0.08.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DERM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Journey Medical Corp has a C grade with 81% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DERM stock overvalued or undervalued?
Valuation metrics for DERM: ROE of -7.2% (sector avg: 15%), net margin of -14.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is DERM's AI grade for 2026?
Our dual AI analysis gives Journey Medical Corp a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DERM's free cash flow?
Journey Medical Corp's operating cash flow is $2.9M, with capital expenditures of $15.0M. FCF margin is -75.8%.
How does DERM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -14.0% (avg: 12%), ROE -7.2% (avg: 15%), current ratio 1.72 (avg: 2).